Corporate Webpages LGI Homes Inc.
LGI Homes, Inc. (LGIH) is one of the more recently-founded home builders in
the U.S. serving a large number of areas along both coasts and
in the southern parts of the U.S., based in Texas. Its growth
rate and acquisition strategy have been phenominal. It is one
of the few remaining stocks in this over-bought market with an
acceptable Zenith Index. It has a good website, but no CEO
Letter to Shareholders, relying instead on difficult to bring
up conference calls. It features quality homes in the low end
starter range on small lots in large developments with over one
hundred communities operating in the newly-constructed sell zone
at one time.
Like all residential home builders, LGIH is profitting from a
booming real estate market still in recovery from the 2008
sub-prime lending crisis and major recession. Both researchers
and analysts tend not to favor this stock for various reasons.
We noted it had an extraordinarily and consistgently large non-GAAP
portion (unusual events) in its earnings statements.
Nonetheless, we did not see consistent objections to its
financial status. We did note that Standard & Poor's was
exceptional negative on the stock. But Moody's gave LGIH's
bonds acceptable rating.
The chart on the stock is almost straight up with a few bumps
along the way. We would consider it more of a "buy and hold"
than a trading range stock. It has a high intrinsic value due
to growth potential already demonstrated.
News on the stock consists mainly of new grand openings of major
housing tracts all across the country.
10-08-2019: LGI Homes Inc. (LGIH): Aggressive Home Builder with Extreme Growth Potential
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
Zenith Index
Financial Statements
Avg. P/E to Current P/E
Financial Ratios
Intrinsic Value (Disc. CashFlow)
Fair Value Estimator
Projected Earnings
Research Reports
Analysts' Opinions
Insider Activity
Institutional Activity
Sentiment
Short Interest
Standard & Poor's
Management's Discussion
Channel Potential
MACD Histogram
Intraday Chart
Val Idea
Stock Consultant
Point & Figure Chart
Wall Street Analyzer
Marketspace Chart
Time Series Forecast
Neural Network Prediction
Stock Options
Ultimate Trading Systems
Recommendation
Corporate Wepages
Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is considered strong and
> 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
LGI Homes, Inc. (LGIH) Exchange: Nasdaq
1450 Lake Robbins Drive
Suite 430 Sector: Consumer Cyclical
The Woodlands, TX 77380 Industry: Residential Construction
LGI Homes, Inc. engages in the design, construction, and sale of new
homes in Texas, Arizona, Florida, Georgia, New Mexico, North Carolina,
South Carolina, Colorado, Washington, Tennessee, Minnesota, Oklahoma,
Alabama, California, Oregon, Nevada, and West Virginia. It offers
entry-level homes, such as detached homes and townhomes, and move-up
homes under the LGI Homes brand name; and luxury series homes under the
Terrata Homes brand name. As of June 30, 2019, it owned 93 communities.
LGI Homes, Inc. was founded in 2003 and is headquartered in The
Woodlands, Texas.
Last Trade: 83.79 52-Week Range: 87.19 - 37.16
Employees: 857 Avg.Volume: 248,753 Shares
Corporate Governance:
Pillar scores are Audit: 1; Board: 5; Shareholder Rights: 6; Compensation: 3.
(A lower number means less governance risk.)
EPS: 5.78 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Payout Ratio: 0.00
Key Statistics:
Trailing P/E: 14.30 Forward P/E (est.): 10.50 Target Price: 80.90
Qrtly Stock Price Growth (yoy): 101.42% Beta: 0.98
Qrtly S&P Index Growth (yoy): 10.00% Short Ratio: 13.49%
Qrtly Revenue Growth (yoy): 52.00% Shares Out: 22940000
Qrtly Earnings Growth (yoy): -3.30%
Book Value: 31.61 Debt/Equity: 92.42%
Price/Book Value: 2.61 Operating Profit Margin: 12.24%
Price/Sales: 1.23 Profit Margin: 9.31%
Market Cap: 1,909,000,000 Return on Equity: 22.38%
Enterprise Value: 2,550,000,000 Return on Assets: 8.86%
Operating Cash Flow: -116,723
Free Cash Flow: -362,375
Annual Income Statement: (All numbers in thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Total Revenue 1,504,400 1,257,960 838,320
Cost of Revenue 1,124,484 937,540 616,707
Gross Profit 379,916 320,420 221,613
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 179,805 150,619 110,142
Total Operating Expenses 179,805 150,619 110,142
Operating Income or Loss 200,111 169,801 111,471
Income from Continuing Operations:
Total Other Income/Expenses Net -1,013 1,601 2,201
Interest Expense 0 0 0
Income Before Taxes 199,098 171,402 113,672
Income Tax Expense 43,812 58,096 38,641
Net Income from Continuing Op.s 155,286 113,306 75,031
Non-recurring Events:
Extraordinary Items 0 0 0
Net Income 155,286 113,306 75,031
Net Income Avail to Common Shares 155,286 113,306 75,031
Annual Cash Flow Statement: (All numbers in thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Net Income 155,286 113,306 75,031
Operating Activities:
Depreciation 711 791 1,089
Changes in Accounts Recv'bls 1,870 -27,651 270
Changes in Liabilities -117,198 -68,985 -108,905
Changes in Inventories -234,664 -200,609 -183,884
Changes in other Oper'g Acts -281,527 -184,673 -185,000
Total Cash Flow f Operations -116,723 -68,467 -108,183
Investing Activities:
Capital Exenditures -475 -518 -722
Investments -74,463 0 0
Other Cash Flows fr Investing 0 0 0
Total Cash Flows from Investing -74,938 -518 -722
Financing Activities:
Dividends Paid 0 0 0
Sale of Purchase of Stock 1,184 15,624 27,942
Other Cash Flows fr Financing -6,949 -5,092 0
Total Cash Flows from Financing 170,714 87,038 120,855
Change in Cash & Cash Equiv. -20,947 18,053 11,950
Annual Balance Sheets: (All Numbers in Thousands)
Period Ending 12/31/2018 12/31/2017 12/31/2016
Current Assets:
Cash & Cash Equivalents 67,571 49,518 37,568
Short Term Investments 0 0 0
Net Receivables 44,706 17,055 17,325
Inventory 918,933 717,681 531,228
Other Current Assets 0 0 0
Total Current Assets 1,031,210 784,254 586,121
Long-Term Investments 4,822 4,381 3,662
Property, Plant & Equipt 1,674 1,960 2,108
Goodwill 12,018 0 0
Intangible Assets 12,018 12,018 12,234
Other Assets 14,196 5,631 14,869
Total Assets 1,079,892 814,514 622,333
Current Liabilities:
Accounts Payable 12,020 12,277 24,020
Current Portion LT Debt 102,831 46,389 40,006
Other Current Liabilities 0 0 0
Total Current Liabilities 114,851 58,830 66,752
Long Term Debt 475,195 400,483 308,192
Other Liabilities 0 0 0
Total Liabilities 590,046 459,313 374,944
Stockholder Equity:
Common Stock 228 223 213
Retained Earnings 276,488 163,182 88,151
Capital Surplus 0 0 0
Total Stockholder Equity 489,846 355,201 247,389
LGI Homes, Inc. (LGIH) [Indices near +3.0, near zero,
or < zero bear special attention.]
P/E Ratio Tests:
P/E Ratio < 28? 1.9580 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: -3.0000 Forward P/E Ratio < 28? 2.6667
Price/Sales Ratio < 2.3? 1.8699 Inventory/Sales < 5%? 0.0819
Sales < $1 Billion? 0.6647 Operating Margin < 7.5%? 0.6127
Balance Sheet Tests:
Debt/Equity < 0.40? 0.4328 Long-Term Debt Service: 1.0308
LTD Being Reduced? -3.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 3.0000 Working Capital >= 1.5? 0.1693
Leverage Ratio < 20%? 0.4340 Debt/Assets < 1? 2.2725
Quick Ratio > 1? 3.0000 Inventory Turnover > 1? 3.0000
Share Equity Increase: 2.8149 Market Cap.< 1.5 Billion? 0.7858
Intangibles < 3% Assets? 1.3478
Income Tests:
Profit Margin < 7.5%? 1.2413 EPS Annual Growth > 10%? 0.0730
Dividend Yield > 2.0%? 0.0000 EPS 3-yr Growth > 15? 0.0725
Enterprise Value/Revenue 1.2692 EPS Growth Consistent? 2.0000
Enterprise Value/EBITDA: 3.0000 Collection < 45 days? 3.0000
EPS Qrtly Growth > 10%? -0.0303 Gross Pft/Cur. LTD > 1? 3.0000
Borrowing Int. Rate < 6%? 3.0000
Stock Performance Tests:
Volatility > 25%? 2.2952 % Held by Insiders < 5%? 0.3740
Beta > 1.25? 0.7840 % Held by Institut. < 50? 0.5088
50 Da MA > 200 Da MA? 0.3043 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 1.9504 Short Ratio > 5? 2.6980
Price/Book Value < 3? 3.0000 Short % of Float > 20? 1.2455
Return on Assets > 17%? 0.5212 Average Volume > 100,000? 2.4875
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 0.3221 Positive Free Cash Flow? -1.0000
Positive Oper. Cash Flow? -1.0000 Price to C.F.Ratio < 14?: 2.6575
Cash Flow / Assets > 10%? 3.0000
LGIH LGI Homes, Inc. Overall Zenith Index: 1.3047
Financial Statements |
LGI HOMES INC (LGIH) INCOME STATEMENT Fiscal year ends in December. USD in thousan 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Revenue 383,268 630,236 838,320 1,257,960 1,504,400 1,554,953 Cost of revenue 280,481 463,304 616,707 937,540 1,124,484 1,176,446 Gross profit 102,787 166,932 221,613 320,420 379,916 378,507 Operating expenses Sales, General and administrative 60,416 87,258 110,142 150,619 179,805 191,912 Total operating expenses 60,416 87,258 110,142 150,619 179,805 191,912 Operating income 42,371 79,674 111,471 169,801 200,111 186,595 Other income (expense) 708 606 2,201 1,601 -1,013 834 Income before taxes 43,079 80,280 113,672 171,402 199,098 187,429 Provision for income taxes 14,868 27,450 38,641 58,096 43,812 42,664 Net income from continuing operations 28,211 52,830 75,031 113,306 155,286 144,765 Net income 28,211 52,830 75,031 113,306 155,286 144,765 Net income available to common shareholders 28,211 52,830 75,031 113,306 155,286 144,765 Earnings per share Basic 1.37 2.65 3.61 5.24 6.89 6.37 Diluted 1.33 2.44 3.41 4.73 6.24 5.78 Weighted average shares outstanding Basic 20,667 19,940 20,798 21,605 22,552 22,768 Diluted 21,203 21,741 22,024 23,933 24,892 25,063 ____________________________________________________________________________________________________________________________________________ LGI HOMES INC (LGIH) BALANCE SHEET Fiscal year ends in December. USD in thousan 2014-12 2015-12 2016-12 2017-12 2018-12 Assets Current assets Cash Total cash 31,370 37,568 49,518 67,571 46,624 Receivables 7,365 17,325 17,055 44,706 42,836 Inventories 367,908 531,228 717,681 918,933 1,228,256 Total current assets 406,643 586,121 784,254 1,031,210 1,317,716 Non-current assets Property, plant and equipment Gross property, plant and equipment 2,577 3,662 4,381 4,822 4,894 Accumulated Depreciation -967 -1,554 -2,421 -3,148 -3,462 Net property, plant and equipment 1,610 2,108 1,960 1,674 1,432 Goodwill 0 0 0 12,018 12,018 Intangible assets 12,481 12,234 12,018 0 0 Deferred income taxes 0 0 0 1,928 2,790 Other long-term assets 17,393 21,870 16,282 33,062 61,517 Total non-current assets 31,484 36,212 30,260 48,682 77,757 Total assets 438,127 622,333 814,514 1,079,892 1,395,473 Liabilities and stockholders' equity Liabilities Current liabilities Accounts payable 15,479 24,020 12,277 12,020 9,241 Deferred income taxes 2,685 2,726 164 0 0 Taxes payable 1,448 6,205 5,040 48,733 10,773 Accrued liabilities 13,887 23,867 23,443 25,161 30,020 Other current liabilities 6,030 9,934 17,906 28,937 35,762 Total current liabilities 39,529 66,752 58,830 114,851 85,796 Non-current liabilities Long-term debt 216,099 308,192 400,483 475,195 653,734 Total non-current liabilities 216,099 308,192 400,483 475,195 653,734 Total liabilities 255,628 374,944 459,313 590,046 739,530 Stockholders' equity Common stock 208 213 223 228 237 Additional paid-in capital 163,520 175,575 208,346 229,680 241,988 Retained earnings 35,321 88,151 163,182 276,488 431,774 Treasury stock -16,550 -16,550 -16,550 -16,550 -18,056 Total stockholders' equity 182,499 247,389 355,201 489,846 655,943 Total liabilities and stockholders' equity 438,127 622,333 814,514 1,079,892 1,395,473 ____________________________________________________________________________________________________________________________________________ LGI HOMES INC (LGIH) Statement of CASH FLOW Fiscal year ends in December. USD in thousan 2014-12 2015-12 2016-12 2017-12 2018-12 TTM Cash Flows From Operating Activities Net income 28,211 52,830 75,031 113,306 155,286 144,765 Depreciation & amortization 825 883 1,089 791 711 671 Deferred income taxes 1 42 -2,562 -2,092 -724 146 Stock based compensation 862 2,279 3,396 4,188 5,937 6,589 Change in working capital -202,771 -145,143 -185,000 -184,673 -281,527 -195,350 Accounts receivable -1,963 -9,960 270 -27,651 1,870 -11,461 Inventory -198,357 -151,707 -183,884 -200,609 -234,664 -190,886 Prepaid expenses -6,066 2,877 -3,650 -8,215 -18,853 -8,396 Accounts payable 1,480 9,630 -11,747 -257 -2,779 2,669 Accrued liabilities 2,752 8,812 8,539 60,702 -25,703 11,214 Other working capital -617 -4,795 5,472 -8,643 -1,398 1,510 Other non-cash items -342 -47 -137 13 3,594 3,233 Net cash provided by operating activities -173,214 -89,156 -108,183 -68,467 -116,723 -39,946 Cash Flows From Investing Activities Investments in property, plant, and equipmen -1,195 -1,117 -722 -518 -475 -431 Acquisitions, net -15,169 0 0 0 -74,463 0 Other investing activities 0 0 0 0 0 -74,463 Net cash used for investing activities -16,364 -1,117 -722 -518 -74,938 -74,894 Cash Flows From Financing Activities Debt issued 147,400 245,382 140,000 100,000 612,717 572,467 Debt repayment -43,531 -154,786 -45,000 -25,000 -436,238 -465,000 Common stock issued 0 9,593 29,448 17,130 2,690 2,509 Common stock repurchased -16,550 0 0 0 -1,506 0 Excess tax benefit from stock based compe 356 47 138 0 0 0 Other financing activities 79,204 -3,765 -3,731 -5,092 -6,949 -6,467 Net cash provided by (used for) financing 166,879 96,471 120,855 87,038 170,714 103,509 Net change in cash -22,699 6,198 11,950 18,053 -20,947 -11,331 Cash at beginning of period 54,069 31,370 37,568 49,518 67,571 48,886 Cash at end of period 31,370 37,568 49,518 67,571 46,624 37,555 Free Cash Flow Operating cash flow -173,214 -89,156 -108,183 -68,467 -116,723 -39,946 Capital expenditure -1,195 -1,117 -722 -518 -475 -431 Free cash flow -174,409 -90,273 -108,905 -68,985 -117,198 -40,377 ____________________________________________________________________________________________________________________________________________
Average to Current P/E Ratios |
(LGIH) LGI Homes Inc.
2014 2015 2016 2017 2018
Annual Earnings: 1.33 2.43 3.41 4.73 6.24
Average Price During Year: 17.98 20.68 28.82 40.12 58.82
P/E Ratio: 13.52 8.51 8.45 8.48 9.43
Average 5-Year P/E Ratio = 9.68
Current Price = 83.32
Previous 5 Quarter Earnings: 1.90 1.52 1.72 0.73 1.82
Current Annualized (Last Four Quarters) Earnings = 4.27
________
Average PE / Current PE = 0.50
--------
...a number above 1.00 is good
1.00 or below is bad
Financial Ratios |
. . . . . . . . . . . . Lowest to Highest, Compared to Industry
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Fair Value Estimator |
Fair Value Estimate:
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Ownership:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Standard & Poor's |
Management's Discussion of Results of Operations Excerpts |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for LGI HOMES INC.:
Symbol? LGIH
Total Months Available: 71
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
60.37 37.16 73.20 52.16 87.19 66.59
RANGE = 87.19 TO 37.16 Close = 83.79
CHANNEL = 66.59 TO 60.37 Degree = 1
Volatility = 7.42% Index = 0
MACD Histogram Divergence |
The theory is that connecting the two most recent peaks or valleys of the MACD histogram will signal the direction of the next major move.
Intraday Chart |
2 Days:
Val Idea |
6 out of 12 favorable, (neutral opinion.)
Stock Consultant |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
2 out of 3 of the ultimate systems favor a downmove.
System Below:
Short term outlook: Positive: Bright Green, Negative: Bright Red
Long term outlook: Postive: Dark Green, Negative: Dark Red.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | + 1 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings | - 1 |
| Cash Flow | - 1 |
| Average to Current P/E | - 1 |
| Ratios | + 1 |
| Intrinsic Value DCF | 0 |
| Fair Value Estimator | 0 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | + 1 |
| Insider Activity | - 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | + 1 |
| Sentiment | + 1 |
| Standard & Poor's | - 1 |
| MACD Histogram Divergence | + 1 |
| Val Idea | 0 |
| Stock Consultant | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | + 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | - 1 |
| Total | + 8 |
Place 360 shares of LGI Homes, Inc.(LGIH) on the Active List.
